1. business and industrial
2. business operations
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4. business process

Report Name – Month XX, 2012
1
Thought Leadership Series
Unhide Your Forgotten Workforce:
How to Manage Your Non-Employee
Headcount
Sponsored by:
Moderator:
Diana Gabriel, Vice President,
Strategic Solutions
Staffing Industry Analysts
Speakers:
John Martin
CEO, Emerging Markets & CTO
IQNavigator, Inc.
September 25, 2012
10 am PDT
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Confidential Report – NOT for Distribution | ©2012 by Crain Communications Inc. All rights reserved.
Thought Leadership Series
Welcome to the Staffing Industry Analysts 2012
Industry Thought Leadership Series
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Thought Leadership Series
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Thought Leadership Series
©2012 by Crain Communications Inc. All rights reserved.
Thank you to our Sponsor and Thought Leader
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©2012 by Crain Communications Inc. All rights reserved.
About Staffing Industry Analysts
Staffing Industry Analysts is the global advisor on contingent work
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Thought Leadership Series
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Thought Leadership Series
Our Speakers Today
Speaker:
John Martin
CEO, Emerging Markets & CTO
IQNavigator, Inc.
Moderator:
Diana Gabriel, Vice President,
Strategic Solutions
Staffing Industry Analysts
This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide
bar on the audio broadcasting icon. If you cannot access the audio, you may dial into the call by dialing 1-408-600-3600 and using access code 668 303 001 Need
further assistance? Contact SIA customer service at 800-950-9496.
Thought Leadership Series
©2012 by Crain Communications Inc. All rights reserved.
UNHIDE YOUR FORGOTTEN WORKFORCE:
HOW TO MANAGE YOUR NON-EMPLOYEE HEADCOUNT
September 25, 2012
Proprietary and Confidential to IQNavigator Inc.
11
TODAY’S TOPICS
Where is Your Hidden Workforce?
 Types of External Workers
 How Are They Different From Employees?
 Case Study #1
Why Engage With External Workers?
 Risks & Rewards of External Workers
 Case Study #2
How Should You Manage External Workers?





Program Design
End-to-End Processes
Maturity Model
Global Considerations
Case Study #3
Wrap-Up
 IQNavigator Overview
 Q&A
Proprietary and Confidential to IQNavigator Inc.
12
WHAT IS THE “HIDDEN WORKFORCE”?
Enterprise boundaries continue to get more elastic as external worker usage rises:
Temporary Workers:
Consulting Workers:
Information Technology
Administrative & Clerical
Independent Contractors
Light Industrial
IT Consulting
Finance & Audit
Legal Services
Other project-based SOW
services
Outsourced Workers:
Task-Based Workers:
IT Outsourcing
Back-Office BPO
Call-Center Outsourcing
Field Services
One-off small projects
(e.g., Elance)
Task-based work (e.g.,
TaskRabbit, Mechanical
Turk)
Proprietary and Confidential to IQNavigator Inc.
13
WHY FOCUS ON THE EXTERNAL WORKFORCE?
Large Part
of Workforce
•
•
Growing
Quickly
20% of average
employer’s workforce
today (Kelly Services)
•
Little visibility into all
the various types of
external workers
•
Temp labor is growing
twice as fast as employee
workforce (BLS)
Non-employees
forecasted to grow up to
50% of workforce by 2020
(MBO Partners)
Proprietary and Confidential to IQNavigator Inc.
Compliance
Failures
•
Misclassification leads to
taxes and fines (Fedex)
•
Lack of off-boarding
leads to computer
tampering (Toyota)
14
WHERE IS YOUR HIDDEN WORKFORCE?
A Broad Spectrum of Non-Employee Workers
External Workers
Employees
• Full & part-time
Characteristics:
• Find and develop
talent
• Predictable payroll
costs
• Processes and
software are Fairly
mature
• HR owns the
processes
By Hour
By Deliverable
By Unit
Temporary
Workers
SOW & Projects
Outsourcers
Industrial Labor
Consultants
Unit-Based Services
Independent
Contractors
Deliverable-based
Services
Catalog Services
• Technical-IT
• ProfessionalManagerial
• Office-Clerical
• Industrial
• Management
Consulting
• Creative Services
• Legal
• Research
• Accounting
•
•
•
•
•
•
IT Outsourcing
BPO / off-shore
Call Centers
Facilities Maintenance
Hospitality Services
Field Services
Process owners: Budget holders, Procurement, Finance, IT, and HR
Proprietary and Confidential to IQNavigator Inc.
15
HOW ARE EXTERNAL WORKERS DIFFERENT FROM EMPLOYEES?
Employees
External Workers
You have employer relationship
Someone else has employer
relationship
Headcount controls
Budget controls
Talent management
Outcome management
Internal talent market
External skillset market
Ongoing relationship
Assignment management
Payroll
Invoices
Proprietary and Confidential to IQNavigator Inc.
16
CASE STUDY #1:
MANUFACTURING
CLIENT
Fortune 500 manufacturing firm had:
• Hundreds of independent consultants in IT
• Thousands of temporary workers in manufacturing and
distribution facilities
BUSINESS CHALLENGES
Gaining control over
independent
consultants for proper
classification
Gaining control over
blue-collar workers for
safety and security
tracking
Providing visibility to
senior management of
external worker
headcount and spend
Proprietary and Confidential to IQNavigator Inc.
EWC SOLUTION
New required process
for on-boarding ICs
Integration with badge
security systems in
manufacturing plants
External headcount
reporting for both
types of non-employee
workers
17
RISK & REWARD:
KEY RISKS OF USING EXTERNAL WORKER
Mis-classification
Co-employment
Security (asset access)
Intellectual Property
Confidentiality
Financial (budget, invoicing, and spending)
Compliance (policies, safety, credentials, etc.)
Outcome delivery
Proprietary and Confidential to IQNavigator Inc.
18
RISK & REWARD:
BUSINESS BENEFITS OF USING THE EXTERNAL WORKFORCE
Access
Specialized
Skillsets
Increase
Flexibility
Cost
• Project: Lower-cost than
• Avoid layoffs during rampdowns
developing in-house
• Ongoing: Specialists can be more
efficient than internal groups
Time
• Faster than developing in-house
Quality
• Access external-market skills and • “Try before you buy” – both
individuals and projects
experience
• Improve results through visibility • Enable growth into new
into past assignments
areas
• Ramp up and down more
quickly
Proprietary and Confidential to IQNavigator Inc.
19
POLL QUESTION #1
What are the top two benefits in your enterprise of using external workers?
Access specialized skill sets
Increase speed and flexibility
Ramp operations up and down
Try out new projects before committing employees
Achieve cost savings
Proprietary and Confidential to IQNavigator Inc.
20
CASE STUDY #2:
INFORMATION
SERVICES CLIENT
Fortune 1000 information services company had:
• Outsourced IT to external firm that provided 3,000
workers
• Acquired a new division that used hundreds of callcenter temporary workers in the U.S.
BUSINESS CHALLENGES
Ensuring security
tracking of 3,000
external IT workers –
both onsite and offsite
Providing visibility into
spending and effectiveness of hundreds of
call-center workers
EWC SOLUTION
Separate “worker
tracking” system for
external IT workers
 Especially off-boarding
End-to-end process
automation for highvolume call-center
workers
 Especially sourcing
Proprietary and Confidential to IQNavigator Inc.
21
DESIGNING A PROGRAM FOR
EXTERNAL WORKER CONTROL
Elements of an External Worker Control program:
Visibility
Risk
Mitigation
Cost
Control
Compliance
Program
Governance
Quality
Supplier
Management
Automation
Program Governance- Ensure EWC strategies and processes
align with you enterprise’s unique set of goals.
Visibility- Who are the workers? What are they working on?
For how long? How much are we paying them?
Compliance- Ensure proper on-boarding and off-boarding;
track required certifications and training.
Risk Mitigation- Enforce policies on tenure limits,
classification processes, do-not-rehire situations, and many
others.
Cost Control- Enforce negotiated rates; evaluate FTE vs.
contractor costs savings; recognize hard dollar savings.
Quality- Measure outcomes of resources and suppliers;
prevent poor performers from returning.
Automation- Deploy an efficient, integrated end-to-end
process to manage all non-employees.
Supplier Management- Work with pre-vetted and approved
suppliers; see supplier performance over time.
Proprietary and Confidential to IQNavigator Inc.
22
END-TO-END PROCESS IS REQUIRED
TO IMPLEMENT A COMPLETE PROGRAM
Quality
Match
Requisition
Cost Control
Time &
Deliverable
Contract
Evaluate
On-Board
Supplier
Management
Invoice &
Payment
Approve
Off-Board
Visibility
Compliance
Risk Management
Automation
Proprietary and Confidential to IQNavigator Inc.
23
MATURITY PROGRESSION FOR EXTERNAL WORKFORCE CONTROL
LaissezFaire
• Each hiring
manager makes
supplier
selection,
decides rates
• Departmental
budgets for
spend control
Keys to success:
Visible
• External worker
information
within a system
• Usually difficult
to derive past
individual or
vendor
performance
Controlled
Optimized
• Enforced
• Part of
approvals for
workforce
different types of planning and
external workers analytics
• Financial
• Process uses
controls for
only approved
contracts and
vendors and
spend
benchmarked
rates
Provide Value to All Stakeholders
Preserve Speed and Flexibility
Proprietary and Confidential to IQNavigator Inc.
24
POLL QUESTION #2
What maturity level is your enterprise overall?
Laissez-Faire
Visible
Controlled
Optimized
Proprietary and Confidential to IQNavigator Inc.
25
MANAGING CONTINGENT WORKFORCE AROUND THE WORLD
Example Country-Specific Regulations in Western Europe
UK: Agency Worker
Regulation mandates
comparable pay and benefits
for temporary workers
compared to employees
Germany: Include Work
Councils when setting up
policies and processes
Ireland: Work hours limited
to 48 per week, also rate
modifier for Sunday work
Netherlands: Data privacy
requires that personal
information be deleted
regarding candidates that
are not hired
France: Workers limited to
35-hour work week
Belgium: For blue-collar
temporary workers, different
rates by age, length of
service, distance from work
location, etc.
Italy: VAT tax calculations
are on the markup amount
between the pay rate and
the bill rate
Localized
Switzerland: e-Invoices must
be signed by a certificate
from a Swiss signatory
Active
Proprietary and Confidential to IQNavigator Inc.
26
CASE STUDY #3:
GLOBAL FINANCIAL
SERVICES CLIENT
Fortune 500 global financial services firm had:
• Thousands of “joint venture” external workers around
the world
• Hundreds of external workers in IT – independent
contractors, SOW consultants, temporary workers
BUSINESS CHALLENGES
Tracking 18,000 total
external workers in
two dozen countries
Ensuring compliance to
strict on-boarding
requirements
Protecting IP and data
in IT globally
Proprietary and Confidential to IQNavigator Inc.
EWC SOLUTION
“Closed-loop” on-and
off-boarding process
Integration with IT
security access system
Global rollout to over
20 countries
High-touch 24x7
support desk
Fast integration of new
acquisition in Italy
27
ABOUT IQNAVIGATOR
Leader in VMS/Services
Procurement software and
services
Helps Global 2000 companies
manage all types of external
workers
 Temporary workers, SOW
consultants, industrial labor, field
services, etc.
 From end to end – selection, onboarding, deliverable tracking,
off-boarding, payment
 Includes budget controls and
self-billing
Localized in over 40 countries
active users in 124 countries
Proprietary and Confidential to IQNavigator Inc.
28
MANAGE YOUR ENTIRE EXTERNAL WORKFORCE GLOBALLY
From a Single System of Record
From a
Single System
White-Collar
• Single system for temp
labor, blue-collar and
consultants
• Unified reporting for
all workers and spend
(real-time data 24x7)
• Single version and
single tenant globally
Blue-Collar
Consultants
Rest of the
World
APAC
Europe
Manage all
External
Workers
North
America
Service Providers
Everywhere
in the
World
Proprietary and Confidential to IQNavigator Inc.
29
Your Questions…
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Thought Leadership Series
©2012 by Crain Communications Inc. All rights reserved.
Thank you to our Sponsor and Thought Leader
Thought Leadership Series
©2012 by Crain Communications Inc. All rights reserved.
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©2012 by Crain Communications Inc. All rights reserved.
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